how to minimize y in expression $(x^y) \bmod{n}$?

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Let's consider $x^y\bmod{n}$.

$y$ comparing to $x$ and $n$ is veeeeeeeery big. How can we minimize $y$ such that $(x^{\mathrm{newy}}) \bmod{n}$ gives same result as $(x^y) \bmod{n}$? What are the rules?

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First compute $z = (x^y \mod n)$ using the binary method (also called square and multiply). The computational effort is $O(\lg_2 y)$. Then compute the partial products $x, x^2, ...$ until you get $x^e = z\mod n$. $e$ is the searched minimal exponent. The effort is $O(n)$ because there are at most $n$ different products.

Here is the algorithm in Python:

def binary(a):
    # returns binary represention of a, e.g. binary(6) = "110"
    b = ""
    while (a > 0):
        b = str(a & 1) + b
        a = a >> 1
    return b    

def minExp(x, y, n):
    # compute z = x^y mod n, effort O(lg y):
    b = binary(y)
    L = len(b)  
    z = 1
    for i in range(0, L): # O(lg y) steps
        z = z * z
        if b[i] == '1':   # i-th bit of b is set
            z = z * x
        z = z % n

    # find minimal exponent (effort O(n)):
    product = 1
    e = 0         # minimal exponent
    while product != z:
        product = (product * x) % n
        e += 1
    return e